Durable Investment Solution

Investing makes it possible for many of us to achieve important lifetime goals, such as retirement. That’s why we believe a better wealth experience requires a consistent investment approach based on financial science and grounded in real-world results.

Our Asset Class Investing philosophy is based on almost nine decades of data, analysis and research, insights from behavioral finance and close relationships with leading academics — including our Investment Committee members, Dr. Meir Statman and Nobel Laureate Dr. Harry Markowitz.

Click here to learn more about “Asset Class Investing.”Click here to learn more about Loring Ward’s Portfolio Models.

How We Build Asset Class Investing Portfolios

There are four key concepts which play a vital role in the construction and management of our portfolios.

Concept One - Part OneLet Markets Work for You

We Believe

Instead of trying to beat the market, let the long-term growth potential of markets around the world work for you. Over time, stocks have significantly outperformed inflation – as well as bonds. Yet most active money managers have consistently failed to outperform. This is why we only use strategic Asset Class investments – which let markets work for you by focusing on delivering market returns.

How We Know

$1 in the stock market in 1926 and kept invested, by the end of 2015 would have grown to $5,390! That’s the power of free markets, powered by human innovation.

Markets have been significant generators of long-term wealth for investors

Source: Hypothetical value of $1 invested at the beginning of 1927 and kept invested through December 31, 2015. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. Total returns in U.S. dollars. Past performance is no guarantee of future results. U.S. Large Cap Stocks represented by the SBBI U.S. Large Company Stock Index, which is an unmanaged index of stocks of large U.S. companies. The Consumer Price Indexes (CPI) program produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Long-Term Government Bonds, One-Month U.S. Treasury Bills, and U.S. Consumer Price Index (inflation), source: Morningstar’s 2015 Stocks, Bonds, Bills, And Inflation Yearbook (2016). Indexes are unmanaged baskets of securities that investors cannot directly invest in. Index performance does not reflect the fees or expenses associated with the management of an actual portfolio. Risks associated with investing in stocks potentially include increased volatility (up and down movement in the value of your assets) and loss of principal. T Bills and government bonds are backed by the U.S. government and guaranteed as to the timely payment of principal and interest. T Bills and government bonds are subject to interest rate and inflation risk and their values will decline as interest rates rise.

Concept One - Part TwoLet Markets Work for You

We Believe

Instead of trying to beat the market, let the long-term growth potential of markets around the world work for you. Over time, stocks have significantly outperformed inflation – as well as bonds. Yet most active money managers have consistently failed to outperform. This is why we only use strategic Asset Class investments – which let markets work for you by focusing on delivering market returns.

How We Know

Active money managers have a poor track record when it comes to outperforming the market reliably and predictably.

Source: Standard & Poor’s Indices Versus Active Funds Scorecard (SPIVA) 2015. Index used for comparison: US Equities — S&P 1500 Index; International — S&P 700 Index; Emerging Markets — S&P/IFCI Composite; US Fixed — Gov. Short, Global Fixed — Barclays Global Aggregate. Outperformance is based upon equal weight fund counts. Index returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. Past performance is not an indication of future results. More recent performance may alter these assessments or outcomes.

Concept Two - Part OnePut Science on Your Side

We Believe

Financial science gives us the knowledge and tools to address the "investment problem." Our Investment Committee builds portfolios with focused exposure to key “factors” of returns, such as company size, relative price (value), profitability and momentum. This factor exposure largely determines a portfolio's risk and return. Working with your advisor, we then recommend how much exposure to these factors is right for you.

How We Know

Great thinkers and economists, including our Investment Committee members, Dr. Harry Markowitz and Dr. Meir Statman, have provided us with powerful insights into how portfolios should be constructed.

We apply — and continuously test — academic
research to address the investing problem

Concept Two - Part TwoPut Science on Your Side

We Believe

Financial science gives us the knowledge and tools to address the "investment problem." Our Investment Committee builds portfolios with focused exposure to key “factors” of returns, such as company size, relative price (value), profitability and momentum. This factor exposure largely determines a portfolio's risk and return. Working with your advisor, we then recommend how much exposure to these factors is right for you.

How We Know

Landmark research by Professors Ken French and Eugene Fama Sr., identified two equity risk factors — small companies and value companies — that investors should expect to be compensated for over the long term. Further research also identified additional factors of return, including profitability and momentum.

Greater potential risk = Greater expected long-term returns

The risks associated with investing in stocks and overweighting small company and value stocks potentially include increased volatility (up and down movement in the value of your assets) and loss of principal.

Concept Three - Part OneManage Risks

We Believe

Risk can't be eliminated, but it can be managed – even potentially reduced – through our prudent approach:

We diversify globally (almost 50% of world stock market value is non-U.S.)

We invest in thousands of securities to reduce company-specific risk

We combine Asset Classes that respond differently to various market conditions

We invest in high-quality, short-term bonds to provide income and help smooth out dramatic ups and downs

How We Know

Investing only in only one country means unnecessary risk as well as missing a world of potential opportunities.

Own Great Companies around the World

Source: Dimensional. In US dollars. Market cap data is free-float adjusted from Bloomberg securities data. Many small nations not displayed. Totals may not equal 100% due to rounding. Past Performance is not indicative of future results. All investments involve risk. Foreign securities involve additional risks including foreign currency changes, taxes and different accounting and financial reporting methods. Countries represented by their respective MSCI IMI(net div.). Indexes are unmanaged baskets of securities in which investors cannot directly invest; they do not reflect the payment of advisory fees or other expenses associated with specific investments or the management of an actual portfolio.

Concept Three - Part TwoManage Risks

We Believe

Risk can't be eliminated, but it can be managed – even potentially reduced – through our prudent approach:

We diversify globally (almost 50% of world stock market value is non-U.S.)

We invest in thousands of securities to reduce company-specific risk

We combine Asset Classes that respond differently to various market conditions

We invest in high-quality, short-term bonds to provide income and help smooth out dramatic ups and downs

How We Know

These Asset Class returns show no reliable pattern. But a globally-diversified portfolio (the black line representing 65% stocks/35% bonds) offers potentially more consistent returns with less risk. Our portfolios have 9 asset classes representing up to 10,000 securities in 45 countries and 35 currencies.

Smart diversification can help you stay on track

Source: Morningstar Direct 2015. Index representation as follows: U.S. Large Cap (S&P 500 Index), U.S. Value Stocks (Russell 1000 Value Index), U.S. Small Company Stocks (Russell 2000 Index), U.S. Real Estate Market (Dow Jones U.S. Select REIT Index), International Developed Value (MSCI World Ex USA Value Index (net div.)), International Small (MSCI World Ex USA Small (net div.)), Emerging Markets (MSCI Emerging Markets Index (net div)), Global Bonds (Citi WGBI 1-5Yr Hdg USD), US Bonds (BofA ML Corp & Govt 1-3 Yr TR)., 25/75 Index Mix: 4% Cash, 35% ST US Fixed Income, 36% Global Bonds, 5% US Large, 5% US Value, 3% US Small, 7% Intl Large Value, 2% Intl Small, 3% US REITs; rebalanced annually. Indexes are unmanaged baskets of securities that are not available for direct investment by investors. Index performance does not reflect the expenses associated with the management of an actual portfolio. Treasury notes are guaranteed as to repayment of principal and interest by the U.S. government. Past performance is not a guarantee of future results. All investments involve risk, including loss of principal. Foreign securities involve additional risks, including foreign currency changes, political risks, foreign taxes, and different methods of accounting and financial reporting. Fixed income investments are subject to interest rate and credit risk. Emerging markets involve additional risks, including, but not limited to, currency fluctuation, political instability, foreign taxes, and different methods of accounting and financial reporting. Real estate securities funds are subject to changes in economic conditions, credit risk and interest rate fluctuations. All investments involve risk, including the loss of principal and cannot be guaranteed against loss by a bank, custodian, or any other financial institution.

Concept FourInvest for the Long Term

We Believe

A long-term perspective is one of the most important ingredients of portfolio success. But the powerful emotions we experience when markets move up and down can get in our way. That's why we incorporate the latest behavioral research to help you make better decisions and stay on track. We also rebalance your portfolio periodically to keep it aligned with your goals. You don’t have to go it alone. Work with an experienced advisor from our Network who has a legal and ethical duty to always put you first.

How We Know

Panic, fear and trying to outguess the market have led the average stock investor to underperform. the S&P 500 by almost 50%. This is where the guidance of your Financial Advisor can make all the difference.

Patience, discipline and your Financial Advisor can help you stay on track

Source: Average stock investor and average bond investor performances were used from a DALBAR study, Quantitative Analysis of Investor Behavior (QAIB), 03/2016. QAIB calculates investor returns as the change in assets after excluding sales, redemptions, and exchanges. This method of calculation captures realized and unrealized capital gains, dividends, interest, trading costs, sales charges, fees, expenses, and any other costs. After calculating investor returns in dollar terms (above), two percentages are calculated: Total investor return rate for the period and annualized investor return rate. Total return rate is determined by calculating the investor return dollars as a percentage of the net of the sales, redemptions, and exchanges for the period. The fact that buy-and-hold has been a successful strategy in the past does not guarantee that it will continue to be successful in the future. Equities, bonds, and other asset classes have different risk profiles, which should be considered when investing. Bonds are subject to market and interest rate risk. Bond values will decline as interest rates rise and/or issuer’s creditworthiness declines, and are subject to availability and changes in price. Stock investing involves risks, including increased volatility (up and down movement in the value of your assets) and loss of principal. The S&P 500 is an index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe. The Barclays Bond Index covers the USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes bonds from the Treasury, Government-Related, Corporate, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS sectors. Indexes are unmanaged baskets of securities that investors cannot directly invest in. Index returns do not take into consideration any fees.

Let Markets Work for You

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Put Science on Your Side

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Manage Risks

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Invest for the Long Term

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Loring Ward’s strong belief in the power of markets to create long-term wealth frees us to think differently about investing. We don’t follow fads or relegate our clients’ futures to guesswork and speculation.

Instead, our Investment Committee builds portfolios that aim to capture the returns of global stock and bond markets and help investors reach their long-term goals. Since trading, fees and expenses can have a real impact on performance, all Loring Ward portfolios are managed to help control risks, control costs and minimize taxes.

Invested in Your Goals

All investments involve risk, including the loss of principal and cannot be guaranteed against loss by a bank, custodian, or any other financial institution. Stock investing involves risks, including increased volatility (up and down movement in the value of your assets) and loss of principal. Bonds are subject to market and interest rate risk. Bond values will decline as interest rates rise, issuer’s creditworthiness declines, and are subject to availability and changes in price.

Diversification or rebalancing cannot guarantee a gain or protect against a loss.

The buying and selling of securities for the purpose of rebalancing may have adverse tax consequences.

Supporting and guiding Advisors is what we love to do. It’s in our DNA.